So cal multifamily brokerDisclaimer: All information contained herein is obtained from sources believed reliable. We have not verified it and make no guarantee, warranty or representation about it. Any projections, opinions, assumptions or estimates used are for example only. We make no claim(s) as to the accuracy or reliability of the information presented. If you wish for us to analyze your specific property or situation please feel free to call or email us anytime.
Here's What's Happening In The Market, Here’s What This Means For You
Eviction Legislation Gains Steam
With many eviction bans expiring, officials are weighing whether to extend or adopt new legislation, leading to a showdown between renter and landlord groups. In California, advocacy groups are pushing lawmakers to pass bills that would make it more difficult to evict renters.
The City of Los Angeles extended its eviction moratorium this month until Dec. 31, 2022. The news came shortly after a group of Los Angeles landlords challenging the eviction moratorium sought to bring their challenge all the way to the U.S. Supreme Court.
The Apartment Association of Greater Los Angeles (AAGLA) filed a legal challenge to the moratorium in 2020 but lost their appeal. However, the challenge was supported by several industry and legal groups, including the New Civil Liberties Alliance, the California Apartment Association, and the California Association of Realtors. After appealing its case late last year, the U.S. Supreme Court request a response in the case from the City of Los Angeles in early January, meaning that the legal challenge still has a chance to be heard in the nation’s top court. From the very beginning, the Apartment Association of Greater Los Angeles has stated that it will fight its case ‘out’ until the very end, the group wrote in a release on Jan. 14.
The Pulse of the Market
Absorption Rates were higher in just about every county. The number of new listings also increased just about everywhere which in turn increased the total number of active listings. Sellers are starting to put their property on the market. Perhaps it’s because of the new year or it could also be the threat of increased interest rates and the thought that the market might slow down a bit. They want to take advantage of the last bit of the strong sellers-market we’ve been experiencing for the last few years.
What to Expect:
Inventory levels should continue to increase and sales activity should remain strong for the next few months. If the first anticipated interest rate increase is minimal, potentially a 1/4 % it shouldn’t have much of an effect on the market. It’s the anticipated 1-2 additional interest rate increases later in the year that we might see a little bit more of an effect on sales and activity. Average Cap Rates and Gross Rent Multipliers haven’t changed much over the last few months and that will probably be the same for the next few months.
Orange County
Orange County multifamily sales activity is still strong with 11 Closed Sales Last Week. The Closed Sales - Average Days on Market stayed low at just 25 days. There were 9 of the 11 Closed Sales Last Week that were Transactions That Sold At or Above Asking Price. The monthly Absorption Rate increased from 1.3 months previously to 1.86 months currently.
Good news for Orange County multifamily listing inventory. With 15 New Listings Last Week the Total Number of Active Listings moved up to 106 total listings last week. The prior week this stat was at 91 total listings. So this stat is moving in the right direction- giving buyers more inventory to choose from. Months of Inventory moved from 2 months in the previous month to 3 months currently.
Looking at the monthly stat charts for Orange County. Orange County’s Days To Sell Average dropped to the lowest point in the last 4 years at 31 days. The Total Number of Active Listings was at 157 total listings which is the lowest amount of inventory in the last 4 years. The Total Number of Sales Last Month were the fewest we’ve seen since November of 2021.
List of Closed Sales
Southern California
Long Beach multifamily sales activity has been slow so far for the first part of 2022. Last week there were just 3 Closed Sales. But all 3 of the Closed Sales Last Week were Transactions that Sold At or Above Asking Price. The Closed Sales - Average Days on Market was just 26 days. The monthly Absorption Rate was up slightly going from 1.4 months previously to 1.84 months currently.
The Long Beach multifamily listing inventory was just slightly better last week than the previous week when this stat went from 60 total listings in the prior week to 61 total listings last week.
Looking at the monthly stat charts for Long Beach we see the Average Days to Sell increased last month to 48 days but its still in the same range it’s been for the last couple of years. The Number of Active Listings was up slightly from 116 listings in the previous month to 119 listings last month. There was a big increase in New Listings last month as it more than doubled the previous month with 42 new listings. The Number of Sales last month came in at 33 total sales. This ends up at a lower point in the range of sales over the 1 ½ years.
List of Closed Sales